Iraq approves sixth round of gas exploration contracts

Shafaq News/ Iraq has approved contracts in a sixth bidding round for gas exploration contracts in the north and west of the country, Oil Minister Hayyan Abdul-Ghani said in a statement on Sunday.

Iraq, OPEC's second-largest producer after Saudi Arabia, depends on oil sales for over 90 percent of its public budget and has been under pressure from the United States to reduce its reliance on gas imports from Iran.

The country flares much of its own gas, extracted alongside crude oil at its fields, because it lacks the facilities to process it into fuel and instead uses Iranian power imports to generate electricity.

"In consonance with the government program and directives of Prime Minister Mohammed Shia al-Sudani to augment the reserves of oil and gas, to maintain and increase the production of crude oil, and free gas, as well as addressing the associated gas from oil operations and converting it into a productive and beneficial wealth and energy that covers the domestic need," he said.

" This is particularly relevant for power plants, the petrochemical industry, fertilizers, among others, in addition to exporting the surplus to the global markets. This strategy aims to invigorate the economic situation in Iraq across its diverse regions, and provide job opportunities for its citizens."

Iraq auctioned off a total of 11 blocks near the borders with Iran and Kuwait and in offshore Gulf waters in 2018 but failed to attract many major firms, with only Italy's Eni submitting an offer.

Five of the exploration blocks failed to attract any bids. Of those remaining, three went to Iraqi-owned, United Arab Emirates-based Crescent Petroleum, two to China’s Geo-Jade and one to United Energy Group, also based in China.

"The Ministry of Oil has completed its preparations to be ready and set for the launch of the sixth licensing round, specifically for the promising gas exploration patches, totaling eleven patches across the Iraqi provinces," he added.

The patches, according to Abdul-Ghani, include the following fields, sites, and exploration areas:

1. Tal Al-Hajar Patch - Nineveh Governorate

2. Al-Khalisiyah Patch - Nineveh and Anbar Governorates

3. Anbar Patch - Anbar Governorate

4. Aana Patch - Anbar Governorate

5. Al-Inz Patch - Anbar Governorate

6. Akashat Patch - Anbar Governorate

7. North Rutba Patch - Anbar Governorate

8. South Rutba Patch - Anbar Governorate

9. Tubal Patch - Anbar Governorate

10. Al-Waleed Patch - Anbar Governorate

11. Al-Qurnah Patch - Anbar and Najaf Governorates.